Comparative Study Of Asset Securitization Of Chinese And Foreign Legal System

Securitisation was first developed in the U. S. A in the early 1970's and it developed very fast in just 30 years, which is a new financing technique that involves the conversion of usually illiquid assets with predictable cash flows into marketable securities.Asset securitisation process is very complex and a typical securitisation transaction would involve an entity selling a pool of assets to a special purpose vehicle (SPV). As the transaction is generally structured as an asset sale, the assets are removed from the sponsor's balance-sheet. The SPV, in order to fund the purchase, would issue mortgage or asset-backed securities, which are sold to investors in the domestic or international capital markets.The first chapter of this study generally introduces some matters of asset securitisation and tries to explain why the asset securitisation is so popular. The reason lies in the participations of asset securitisation are all the winners, as well as the governments.The second chapter analyses the legal essential of asset securitisation. This chapter analyses the difference between "the transferred asset" and "the backing asset" by comparing asset securitisation with other financial instruments.The third chapter is about the risk-remote legal system. In this chapter, the "true sale" legal system is introduced and the new Bankruptcy Act in the U. S. A is analyzed. Then this chapter introduces the main risks of asset securitisation, including the bankruptcy risk, the recharacterisation risk and the substantive consolidation risk.The fourth chapter introduces the supervision regulations in the U. S. A, Taiwan, Japan and China.The last chapter is an overview on the domestic legislations and the...